I am disciplined enough to make my RRSP contributions during the year with taxes withheld a source for the best tax efficient process, but when the RRSP deadline comes around, I am always looking at how I can maximize my contributions.
I usually spend a few hours in Turbo Tax to get a quick assessment of my tax return to see how much I could contribute to my RRSP. I do leverage my line of credit to make contributions when needed knowing the refund will cover it. Please not that it’s not an RRSP loan as advertised by the banks. It’s just borrowing from myself for a very short period.
The process requires DISCIPLINE. Investing and more importantly, FINANCIAL FREEDOM, are also the result of DISCIPLINE. Save often and use a process to make your investment decisions.
February is a month where I am focusing on contributing to my RRSP account and strategizing on the purchases I will make. Usually, they happen in March so stay tuned for the transactions next month.
One decision I have made is to sell off all my Cominar REITs TSE:CUF.UN holdings. I did an assessment of my money held with the company, and while it pays a healthy dividend, it has taken a step backward versus other REITs. In the end, I prefer to invest in a REIT company that isn’t restricted to Quebec and can benefit from different opportunities. I am still looking for the next holdings, but I can tell you that Brookefield Property Partners TSE:BPY.UNNYSE:BPY is the leading investment choice for me.
- Selling all Cominar REITs in all accounts. No purchases made yet.
- Added Brookefield Infrastructure PartnersTSE:BIP.UN in my RRSP account.
My February dividend income adds up to $1,083.61. 2017 is off to a good start with two consecutive months above $1,000. I have added quite a bit of money to my accounts in the first 2 months of the year and I should see the benefits in the next quarter starting in April. I am pretty confident all of my monthly dividend income will be at least $1,000 but my disposal of CUF.UN will have an impact as it’s a high yield stock.
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.